This document provides an overview of pathways for starting a social impact project through nonprofit or charitable means, including starting a traditional nonprofit organization, volunteering or donating to existing causes, fiscal sponsorship, and alternatives to formal nonprofit status. It discusses options like becoming a registered 501(c)(3), pursuing fiscal sponsorship through an established nonprofit, or remaining informal. Fiscal sponsorship in particular provides shared resources for mission-driven projects and is well-suited for new initiatives, time-limited programs, businesses doing charitable work, and organizations pending 501(c)(3) approval. No matter the path chosen, principles like theory of change, leadership, governance, sustainability, and compliance are important to consider.

1. Starting a Nonprofit or
Charitable Project
An overview of pathways for social good through a sharing economy
Amanda LaFleur, Executive Director
amanda@thenopi.org

2. Start a nonprofit
Don’t start

3. 37,627
nonprofits in Massachusetts
Official data undercounts independent nonprofits and informal charitable projects not required to register with
the IRS, so the true size of the Massachusetts nonprofit sector is probably much larger.
Massachusetts Nonprofit Network, 2020

4. Alternatives Show the audience you anticipated
their questions.
Leave room for Q&A, but use the Appendix
as a way to show that you both thought
about those questions and have solid
answers with supporting information. Let
the audience test their understanding of the
problem and the solution you’ve outlined -
questions give them a chance to talk
themselves into your approach, and give you
a chance to show mastery of the subject.
➔ Volunteer
➔ Donate
➔ Fundraise
➔ Collaborate
➔ Apply

5. Let a hundred
flowers bloom; let a
hundred schools of
thought content

6. We need
diversity in the
nonprofit
sector
➔ Ideas
➔ Experiences
➔ Perspectives
➔ Solutions
➔ Participation

7. Traditional Path
Step 1
Ideas, participants,
plans, goals, gather info
Step 2
Board of directors, bylaws, state
registration, Apply for 501(c)
Step 3
Fundraising, infrastructure,
compliance, finances, grants,
delivery of services
Recommended Resource:
https://www.harborcompliance.com/information/nonprofit-governance-by-state

8. Options
There are many options for
nonprofits to establish themselves
as agents of social change, each
with varying levels of commitment
and legal requirements.
Volunteer / Donate
Become a 501(c)(3)
Fiscal Sponsorship

9. What is fiscal sponsorship? “The shared economy”
A fiscal sponsor, is a nonprofit backbone organization that provides shared corporate structure, finance,
HR, legal, insurance, risk management and other resources among multiple semi-autonomous missions.
Source: Social Impact Commons

10. Fiscal
Sponsorship is
ideal for
➔ Individuals and groups forming
new nonprofit organizations
➔ Time-specific charitable projects
and programs
➔ For-profit businesses engaging
in charitable work
➔ Programs responding to an
urgent need
➔ Pending or soon-to-be 501c3
organizations
➔ Spin-off programs from other
nonprofit organizations
Source: Social Impact Commons
Learn more at thenopi.org/fiscal-sponsorship

11. No matter
the path
➔ Theory of change
➔ Leadership
➔ Governance
➔ Sustainability
➔ Compliance

12. Financial Sustainability
Source: https://araize.com/nonprofit-funding-sources-top-5-revenue-streams/

13. Resources
➔ thenopi.org
➔ catchafire.org
➔ techsoup.org
➔ google.com/nonprofits
➔ boardsource.org
➔ candid.org

14. nonprofit incubator
Amanda LaFleur, Executive Director
amanda@thenopi.org
617.702.2929
thenopi.org
Advancing social change many
projects at a time